March 11, 2020•173 words
Wall Street tumbled on Wednesday and the Dow entered a bear market, as the WHO declared the novel coronavirus outbreak a global pandemia and as concerns mounted over the Trump administration’s fiscal stimulus package. Uncertainty on the timing remains unclear, while Sen. Chuck Grassley, head of the Finance Committee, said the tax cut needed to be examined. On Tuesday, Johns Hopkins University confirmed more than 1000 coronavirus cases in the US alone, triggering anxiety. Abroad, the Bank of England cut the monetary policy rate by 50 bps to 0.25%, mimicking the Federal Reserve’s response. Cruises and airlines were dragged by unclear aid stimulus. The Dow Jones plummeted 1465 points or 5.9% to 23553, entering a bear market amidst a 20% drop from last month record close. The S&P 500 plunged 141 points or 4.9% to 2741. The Nasdaq tumbled 392 points or 4.7% to 7952. Both the S&P 500 and the Nasdaq are now 19% below a recent peak reached in February.